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11 difficulty in launching expensive brands due to

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11. Difficulty in launching expensive brands due toweak income of consumer base0.0320.0612. No Direct outlets0.0220.0413. Less consumer research in some areas0.0320.06Total1.002.79
Result:Internal factor evaluation matrix(IFE)is a tool that uses internal audit’s report to analyzea firm’s internal strengths and weaknesses. An EFE matrix gives important information and helpsin strategy formulation.The highest rating is given to“Strong Brand name”which is4with the weightage of15%it isthe most important factor as Nestle is known for almost two decades for its healthy, nutritiousand quality products. It is Nestlé’s brand name that helped Nestle Pakistan to earn trust of peopleand increase profit every year. So, it is our major strength and the strengths with3rating areminor strengths. Similarly in weakness our major weakness is“Low advertising and marketingof Nestle Milk pack”due to its rating1and it was given with the weight of0.12. As weaknesson point 10 it is our minor weakness because its rating is2with0.05weight due to itsimportance.Nestle total weighted score is2.79above average, more than 2.50 which indicates that Nestle hasa strong internal position. Company will work on developing strategies to overcome theseweaknesses and to make their strengths stronger.External Factor Evaluation MatrixKey External FactorsWeightsRatingsWeightedScoresOpportunities1 Consumer expenditures for food in Pakistan increasedby 3.6%.0.1230.362. Focus of consumers is targeted. Such as health andhygiene0.1040.43. Population density in Pakistan hasincreased by 2.18% (per square km)0.0310.034.Pakistan is the world 5th largest milk producingcountry with output of over 200 billion liters.0.0640.245. Population increased0.0720.146.Disposable income of Pakistanis increased by 3.6%0.0830.247. Working on distribution channels to not allowconsumers to shift to competitors0.0520.108.Market leading in Pakistan dairy sector(approximately40%)0.1240.489. Potential of growth in Pakistan dairy market0.0230.06
Threats10. Shift in regulatory environment by government.0.0740.2811. Economic instability or imbalance in Pakistan that canaffect profits0.0640.2412. Consumers alternatives. Here price and taste is animportant issue that can shift consumers.0.0530.1513. Inflammation is getting higher0.0620.1214. Numerous technological threats such as strongadvertising by competitors because of lack oftechnological knowledge.0.0420.0815. Heavy influence of monetary disaster internationally.0.0320.0616. Increase in taxation0.0410.04Total13.02ResultEFE Matrix is a strategy tool used to examine a company's external environment and toidentify available opportunities and threats.After the PESTLE Analysis we extract some important threats and opportunities of our company.Then we put those threats and weaknesses in EFE matrix and check where the company stands intheir external factors.Also we can see that in opportunities our main opportunity is “marketleading in Pakistan dairy” sectoras it 100% avails its rating on 4 whereascost of acquisitionis on rating1with0.03

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Term
Summer
Professor
Amir Ilyas
Tags
Marketing, Brand, Nestle Company

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